How to Get a Merchant Account: Steps, Documents and Approval Time

A merchant account is an account with an acquiring bank that lets your business accept card payments. The bank settles each sale and deposits the money into your business checking account, minus fees. Our guide to merchant accounts covers the basics in more depth.

Because the bank is on the hook if your customers dispute charges, it wants to know who you are and what you sell before it approves you. That review is underwriting.

Payment apps work the other way around. They let you sign up in minutes, then review your business after you start taking money. That is why some merchants find their funds held or their account closed weeks later. With a merchant account, the hard questions come up front, so once you're approved you know where you stand. For the full comparison, see merchant account vs payment facilitator.

Every provider and bank has its own list, and the exact items depend on your business type. These are the documents and details underwriters usually ask for. Having them ready before you apply is the single biggest thing you can do to speed things up.

Many providers also run a credit check on the owners. Some ask for business bank statements, a business license or supplier invoices, especially for newer or higher-risk businesses.

Get your website ready too. Underwriters check that your site shows your products and prices, a refund and return policy, shipping terms, and customer service contact details. Card network rules also require some of these on the checkout pages. Our checklist of merchant account website requirements lists what to add before you apply.

1. Gather your documents. Use the list above. Scan your ID and voided check so you can upload them, and make sure your website is live with its policies posted.
2. Apply. Fill out the online merchant account application. Describe what you sell plainly and give realistic volume numbers. Guessing high or low can mean a second round of questions later.
3. Underwriting. The provider reviews your application, your owners, your website and your processing history. If something is missing or unclear, expect a call or email. Answer quickly: the clock mostly stops while the underwriter waits on you.
4. Approval. Once the bank approves you, you get your merchant account details and your pricing. At START, pricing is interchange-plus: the card network's cost plus a fixed markup. Our guide to interchange-plus pricing shows how to read it.
5. Connect your gateway and test. A payment gateway sends each card payment from your website or virtual terminal to the processor. With Authorize.Net, START usually has the gateway set up within 24 business hours of approval. Our guide to getting an Authorize.Net merchant account covers that setup in detail. If you use Cybersource, START sends your merchant account details to Cybersource so the gateway can be connected. Then run a small real sale, refund it, and check that both show up in your bank account as expected.

If Authorize.Net or Cybersource referred you to START, the steps are the same. We find the right acquiring bank for your business, underwrite the account and send the details back to your gateway.

At START, most merchants are approved in 1–5 business days. For Authorize.Net users, the gateway is usually set up within 24 business hours after that. So a complete application from a standard business can be taking payments within about a week.

What slows it down:

• Missing documents. The most common delay. A blurry ID or a missing voided check can add days.
• Website gaps. No refund policy, no contact details or a site still "under construction".
• Unclear business description. If the underwriter can't tell what you sell, they'll ask.
• High-risk products or billing. Subscriptions, CBD, firearms, travel and similar categories get a closer look. See what makes a business high risk.
• A brand-new business. With no card history, the underwriter leans on other evidence, covered next.

Starting out with no processing history is normal. Every business has a first merchant account. A startup merchant account goes through the same review as any other, but without past statements, underwriters usually look at other things instead:

• The owners' personal credit and background. For a new business, the owner is the track record.
• A finished website. Real products, prices, policies and contact details. This matters even more when there's no history.
• Realistic volume estimates. A new business that projects a modest first few months looks more credible than one expecting large volume from day one.
• Supporting documents. A business bank account in the company's name, a business license, and supplier or fulfillment details show the business is real.
• What you sell and how you bill. Pre-orders, long delivery times and recurring billing all raise questions, because the bank carries the risk until the customer receives what they paid for.

The bank may start a new account with a lower monthly processing limit and raise it as you build history. Ask your provider how limits are set for new accounts and how to request an increase.

Selling online for the first time? Our guide to the ecommerce merchant account explains how a website, gateway and merchant account fit together.

A decline from one provider isn't the final word. Banks have different appetites, and the usual causes (weak credit, a high-risk product, past chargebacks or a previous account closure) can often be addressed with the right documents and the right bank. Our guide on how to get approved for a high risk merchant account covers declines, bad credit and past closures in detail.

• ✓Business checking account open in the business's legal name
• ✓EIN (or SSN for a sole proprietor) and your legal business name, exactly as registered
• ✓Clear photo ID for each owner
• ✓Voided check or bank letter
• ✓Recent processing statements, if you take cards today
• ✓Website live with products, prices, refund policy, shipping terms and contact details
• ✓Realistic monthly volume and average sale figures
• ✓Your gateway choice: Authorize.Net or Cybersource

Once the account is live, keep your checkout secure. Our guide to PCI compliance explains what small merchants need to do.